Finance Unit 2 Test Review - Budgeting

What should be the first thing you consider when making a budget?

• Fixed Expenses

• Variable Expenses

• PYF (Pay Yourself First)

• Income

What is the amount of something left over when requirements have been met called?

• surplus

• deficit

• expense

• income

What is the loss of potential gain from other alternatives when one alternative is chosen called?

• surplus

• opportunity cost

• deficit

• trade off

What is a balance achieved between two desirable but incomparable features called?

• opportunity cost

• budget

• surplus

• trade off

What is an estimate of income and expenditures for a set period of time?

• income

• opportunity cost

• budget

• surplus

What is an amount by which something, especially money, is too small called?

• deficit

• surplus

• income

• expense

Which does a budget not include?

• fixed expenses

• variable expenses

• income

• unanticipated expenses

Which is an example of something you would spend disposable income on?

• Red Robin

• Adventure Park

• rent

• movie tickets

Which is a tax advantaged investment vehicle in the US designed to encourage savings for the future higher education expenses of a designated beneficiary?

• grant

• 529 plan

• scholarship

• student loan

Which is a grant or payment made to support a student's education, awarded on the basis of academic or other achievement?

• grant

• 529 plan

• scholarship

• student loan